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RESTRICTED YALTA Russia. By reasserting rights in Dairen and Port Arthur. the area would inevitably direct that trade toward Siberia. they have acquired warm water bases for commercial and Soviet acquisition of southern Sakhalin and the Kuriles naval operations in Far Eastern waters. Joint control has restored to Russian hands the extensive fisheries of over the Chinese Eastern and Southern Manchurian rail- the Sea of Okhotsk, as well as the Sakhalin coal and oil roads (now the Chinese Changchun railroad system) pro- resources formerly exploited by the Japanese. Strategi- vides them with routes connecting these ports with Soviet cally, possession of Sakhalin and the Kuriles has made territory and also a short route across Manchuria to the Sea of Okhotsk a Soviet lake, with Hakkaido the Vladivostok. only area on the fringe not under Soviet control. Addi- Control of the railroad implies control of the area's tion of these territories will also make more secure com- economic life, since transportation facilities regulate the munication by sea between the Soviet centers edging direction of commerce. Before the war the railroads con- Manchuria (Port Arthur, Dairen, and Vladivostok) and trolled the bulk of Manchurian industry. The economy those on Kamchatka and the northern Siberian mainland. can produce a food surplus and basic industrial products The Soviets have gained year-round access to the northern which will help to develop Siberia. Control of rail trans- Pacific for their trading and naval ships. They have port facilities alone would be sufficient to insure that eco- acquired islands in the Kuriles which lie astride the nomic development would be directed along lines favorable northern air route between the United States and Asia. to Siberian needs and to limit participation by other Finally, their acquisitions so flank Japan as to limit any foreign Powers in Manchurian trade and industry. freedom of action to which the Japanese might aspire, and Should the Soviets also encourage Soviet-Manchurian in addition limit the capabilities of an occupying force river trade, the flow of the principal navigable rivers of in Japan. RASTRIOTED 45 743731°-47- 4

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    "ocrText": "RESTRICTED\nYALTA\nRussia. By reasserting rights in Dairen and Port Arthur.\nthe area would inevitably direct that trade toward Siberia.\nthey have acquired warm water bases for commercial and\nSoviet acquisition of southern Sakhalin and the Kuriles\nnaval operations in Far Eastern waters. Joint control\nhas restored to Russian hands the extensive fisheries of\nover the Chinese Eastern and Southern Manchurian rail-\nthe Sea of Okhotsk, as well as the Sakhalin coal and oil\nroads (now the Chinese Changchun railroad system) pro-\nresources formerly exploited by the Japanese. Strategi-\nvides them with routes connecting these ports with Soviet\ncally, possession of Sakhalin and the Kuriles has made\nterritory and also a short route across Manchuria to\nthe Sea of Okhotsk a Soviet lake, with Hakkaido the\nVladivostok.\nonly area on the fringe not under Soviet control. Addi-\nControl of the railroad implies control of the area's\ntion of these territories will also make more secure com-\neconomic life, since transportation facilities regulate the\nmunication by sea between the Soviet centers edging\ndirection of commerce. Before the war the railroads con-\nManchuria (Port Arthur, Dairen, and Vladivostok) and\ntrolled the bulk of Manchurian industry. The economy\nthose on Kamchatka and the northern Siberian mainland.\ncan produce a food surplus and basic industrial products\nThe Soviets have gained year-round access to the northern\nwhich will help to develop Siberia. Control of rail trans-\nPacific for their trading and naval ships. They have\nport facilities alone would be sufficient to insure that eco-\nacquired islands in the Kuriles which lie astride the\nnomic development would be directed along lines favorable\nnorthern air route between the United States and Asia.\nto Siberian needs and to limit participation by other\nFinally, their acquisitions so flank Japan as to limit any\nforeign Powers in Manchurian trade and industry.\nfreedom of action to which the Japanese might aspire, and\nShould the Soviets also encourage Soviet-Manchurian\nin addition limit the capabilities of an occupying force\nriver trade, the flow of the principal navigable rivers of\nin Japan.\nRASTRIOTED\n45\n743731°-47-\n4"
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